Technical Commentary 22/02/10

Due to no big deal on interest rate hike in US, the Asian markets rebounded strongly today after plunging on last Friday. The local market rebounded strongly too however the volume still consider as low. We still view this as a technical rebound and not the up trend market. FBMKLCI closed at 1266.44 (+8.78, +0.7%). The immediate support level for FBMKLCI remains as 1255 and the next support level is BBMB at about 1250. The resistance levels are 1268 and 1272 respectively. The market’s volume was decreased by 3.7% and traded with 600 MIL shares today, it is still below 40 days volume moving average. There are 469 up counters and 196 down counters. With the gainers more than the losers, this indicates the overall market is bullish biased today.

FBMKLCI Indicators
The Bollinger band contracted 1% only from 3% last Fri with the candlestick stay above the BBMB, FBMKLCI still in consolidation phase but getting better due to rebound today.

RSI was touching 50; indicates FBMKLCI will enter into bullish zone if it crosses above 50.

STC %K closed at 98.48 and the %D stays at 83.75. This indicates FBMKLCI is bullish biased.

The MACD line had crossed the trigger line today. If it can continue to cross above the ZERO level, FBMKLCI will has a chance turn uptrend. The histogram had formed a rounding bottom, indicates there is a chance for FBMKLCI to rebound further and even cancel off the bearish trend if it broke above 1272.

All the indicators above indicate FBMKLCI is getting bullish but not confirm until the Bollinger Band is open. Please refer to the picture of FBMKLCI daily chart for your reference.










Stock to watch with cut loss policy

Unisem - Had broke above the trend line. Watch for break out above 2.24.....

Tomypak - Break out new high with volume grow today. Closed at 3.00, new high.

Evergrn - Need volume support and break out 1.50

LHH - Trend line broke out, need volume support

Airasia - Just broke out trend line, need volume support